I sell homes and land in the Northern Virginia/Dulles region and
throughout Loudoun County.... and today I am looking for people who wish
to list their homes - like yesterday - and get them sold today.
Here's why:The May market stats were just released from MRIS our local MLS system.
In Northern Virginia, compared to last year, Sales Volume is up 10%, and inventory is DOWN 20%... That means I have 10% more people buying than last year, but I have 20% less homes to show them.
Simply put, more demand, less supply. And yes, that is putting upward
pressure on pricing in our area. Prices in the region are up almost 7%
compared to last year.
Interested in learning more? I have charts, stats and tons of info... just go to my web site, and check it out.
If you are thinking of selling, this might be a great time. I am waiting for your call or email. Let's get together!
Vicky Chrisner
Selling Homes and Land in the Dulles area
703.669.3142
MyAgentVicky@Gmail.com
Showing posts with label northern virginia. Show all posts
Showing posts with label northern virginia. Show all posts
Tuesday, June 12, 2012
Tuesday, May 22, 2012
31 lot Subdivision, Round Hill
Contact info:
Vicky Chrisner
(703) 669-3142
Equal Opportunity Housing
 |
||||
| Posted: February 03, 2012 |
Thursday, May 17, 2012
Northern Virginia Real Estate Market Statistics
This information, and much more, is available on my web site at www.VickyChrisner.com and is updated regularly, so for the latest and greatest info, be sure and check out my site.
HOW MUCH INVENTORY IS THERE?
The real estate market is really all about "Supply and Demand", so to understand the market the first question is: How much inventory is there? In other words, how many homes are currently being marketed for sale in our area?
This chart gives you the 5 year historical data on inventory levels in our Northern Virginia area:
PRICING TRENDS & FACTORS:
When inventory is high, prices will inevitably have to fall so that inventory can be re-balanced. This is what you see in 2007-2009. Remember, too, when looking at that data, that the "First Time Home Buyer" tax credit programs were in place for parts of 2008-2010 offering financial tax incentives for those purchasing their first homes. These programs did stimulate the "starter home" market substantially. This meant that the lower priced homes were selling more rapidly and those were a significant portion of the sales during that time, pulling down the "median" sales price statistics. That program helped to re-balance our inventory levels, and made way for sellers to become "move up" buyers. This program continued to have an impact on the market statistics through 2010. In 2011, we saw more normal trends in pricing, with moderate price growth; and 2012 seems to be reflecting a similar, although even more optimistic, trend.
This chart shows you the 5 year historical data on median sales prices within our Northern Virginia area:
ARE SELLERS GETTING THEIR PRICE?
Sellers need to know how much negotiation buyers are generally expecting in the market.... and Buyers need to know if low ball offers are getting accepted. While every transaction is individual, this chart gives us a big picture answer to that question. In the chart below, you can see the 5 year historical averages in our region for the percentage of selling price to original list price.
WHAT ELSE?
If you're interested in hearing the latest available statistics, and market indicators in our region, you won't want to miss this video, and be sure to check back after the 20th of the month to get the next update.
***
When you're looking for a REALTOR that knows the market,
you can trust Vicky Chrisner.
Vicky Chrisner, Northern Virginia REALTOROffice: 703.669.3142
Email: MyAgentVicky@Gmail.com
www.Facebook.com/TheRealEstateWhisperer
Saturday, May 1, 2010
Bye Bye Tax Credit.... Now What?
Well, bye bye tax credit! That's right, if you're waking up without a ratified contract for your new home this morning, you've missed the opportunity to take advantage of the federal home buyer tax credit. As it turns out, it seems that buyers in the (local) market have been less focused on this than I'd have expected. So, if you're a buyer in the market place, perhaps hoping to find less bidding wars in the market place now that it's May, you could be disappointed. The buyers I have been working with have thought that the tax credit would be "nice" but it was not the underlying reason for their purchase decision. I've not talked to a single buyer who would choose a home they didn't like or overpay for a home just to ensure that tax credit. So, how will the market do in May? Time will tell, but all signs point to a strengthening economy, local job growth, and an improving housing market....in other words, the bidding wars will continue.
Yes, I said improving housing market. You read that right. The more reports we see, the better the numbers look:
But, better than reading someone else's opinion of the market reports, check them out for yourself. Aprils reports begin to come out in 1-2 weeks (usually around the 10th of the month) after all the data has been compiled. You can view the reports at: http://www.mris.com/reports/stats/index.cfm where you can run statistical reports for your zip code and for your county, commentaries begin to be published shortly thereafter.
My Two Cents: As my business has steadily been picking up since the snows melted, I feel certain that the compiled data will show that my business is not an anomoly and that activity overall is high.
While foreclosures and short sales continue to dominate some submarkets, I am seeing a dramatically notable return to "traditional" sales due to relocation and personal changes, and more new home sales. I attribute this to homeowners finally getting "real" about their pricing; and buyers getting sick of the distress home sale market place.
The exception: The high end market. It continues to be very slow. We've not seen as many distress sales in this market segment because these homeowners typically have more financial cushion and can withstand financial losses for longer. However, that won't continue forever, they are not immune. The industry expects to soon see more distress sales in the high end market place, and with that, price corrections to rebalance activity levels.
My recommendations for the high end market:
For sellers: For sellers with a home in that "high end" market, the issue is price. Some homes in that segment are selling and if you want yours to be one of them, take a fresh look at your pricing strategy. Buyers are price, and more importantly value, sensitive. They want to make sure they are buying at a level where they will not lose more value in the next year. Be the first to correct your price~your comps aren't doing it yet, and so there is less competition and it is easier to look like the best value in the market place. Don't wait, you'll end up leaving even more money on the table, especially once you'll be forced to compete with distress sales... and trust me, those banks WILL sell the homes; they are not emotionally tied to the price or the house. When the home next to yours is a trashed foreclosure, and is the only thing that has sold in your neighborhood in a year, it does not bode well for your home's value... and that is coming.
For buyers: Look, look, and look again... and maybe even wait to buy. As those sellers move from "wanting" to sell to "needing" to sell, their prices will come down. Better values are on the horizon in the high end market place.
* * *
* * *
For updates like this and more, 'like' "The Real Estate Whisperer" on Facebook; or contact me for a personal consultation about how all of this impacts YOU:
Vicky Chrisner
703-669-3142
Saturday, March 27, 2010
Movin' Movin' Movin' Get Our Economy Moving Along
Governors from Virginia, Alabama, Mississippi, Pennsylvania, and Tennessee call for a rail corridor along I-81. State governments say this will reduce congestion and they estimate this could add 47,000 jobs in ten years, and 73,000 jobs by 2030.
Friday, December 11, 2009
Not A Headline I'd Write... But....
"If You Don't Buy A House Now You're Stupid, Or Broke"
is the headline from a story found in Business Week, written by Marc Roth.
As MY headline explains, it's not a headline I'd write... (yet) BUT... Listen Up:
In the early 90s I bought a house for $150K, my mortgage payment was $1250 month.
The week of Thanksgiving (2009) I sold a house for $300K, and the buyers mortgage payment is $1265 a month.
Both include the cost of escrows (your taxes and insurance). The main difference is interest rates. A 30 year fixed mortgage when I bought was 8.5% (with 2 points). The 2009 buyer paid no points and got an interest rate well below 5%.
The resulting question:
Is he really paying more for his house NOW than I did for my house THEN?
If you've been on the fence about buying, you need to seriously consider this example, and others like it. I know, some people don't have job security, are fighting bad credit, or have other personal circumstances that make buying impossible, improbable or risky. But, if you are not one of those people, you better get off that fence before those pickets go right up your..... well, near where guys keep their wallets if you know what I mean... The point is, you may not ever be able to get off that fence. (That fence doesn't look too comfortable to me!)
Read the Business Week Story HERE: http://www.businessweek.com/lifestyle/content/dec2009/bw2009127_753974.htm
And, remember, I've been TRYING to tell you this, my friends. (ew, that sounded a bit "McCain-ish didn't it. He lost, maybe I should take note).
But seriously, I post this blog where everyone can see it, but I also post it for my FRIENDS. It's the same advice, whether I've met you or you are my own flesh and blood. So, please, pay attention. Please try to listen.
See these prior posts:
If you've heard enough and think you're ready, give me a call. I will help you analyze your situation to see if buying is a good idea for you right now.
For other questions, feel free to contact me anytime:
Vicky Chrisner
Ofc: 702-669-3142
Email: VChrisner@kw.com
Friday, October 2, 2009
Home Prices Will NOT Return to 2005 Levels
"Home prices will NEVER return to the levels of 2005. NEVER," said Roger Arnold, a well respected Global macro-economist, during a recent conference call with several Keller Williams Agents in the Northern Virginia area. Of course, he meant that comment in the context of relative value when you consider affordability indexes (median home price compared to median area income), inflation, etc.
He is not discouraging buying a home today, just "calling it like he sees it" for existing homeowners, himself included (and me, too). At this point, the artificial home price inflation peaking in 2005 or the beginning of 2006, has pretty much come and gone. Even in areas where there is still fallout to come, prices are relatively low, and homeownership offers many advantages, financial and otherwise.
Locally, in the Washington DC metropolitan area, we're somewhat insulated from the national economic climate, but we don't go unaffected.
Since 2006 and 2007, area homeowners thought they would "wait out the storm" by renting their homes for a year or two, rather than selling them, when life forced a move. It's not that they couldn't sell, just that they wouldn't, because they wanted to get back that 2005 value... and they wanted it very, very much....enough that they couldn't hear what they didn't want to.
Sadly, the next couple of years saw continual price decline. It caused additional fallout, with even more homeowners letting go of those "second homes" to foreclosure when they realized they simply didn't have the reserves to withstand the storm. They had drained their savings, and run up credit lines. Even if their homes were rented, being a landlord turned out to be a much harder job than they thought...and it wasn't making them any money. The flooding of the housing market with so much similar inventory all at once caused home sales to slow to a crawl, and in some areas to a complete halt.
At this point, our inventory was mostly post foreclosed, bank owned homes (REOs)....and a few traditional sellers who had their homes on the market for about $100,000 above the neighboring REO. The traditional sellers were being laughed at by buyers, and REALTORs were shaking their heads. Some agents would even shy away from taking traditional listings entirely. The REO homes had previously been owned as rental homes by investors; or starter homes by people who had already moved into their next "move up" home without selling their first house; or by people who never should have been buyers in the first place. Essentially, our market was flooded with an inventory of homes at similar price points, and all in direct competition with one another. So many choices, and nothing was selling.
In 2008, desperate to move some houses, banks began holding public, well marketed, auctions. What they, and the rest of the world, discovered was that prices weren't low enough. But, when they were, buyers would come out of the wood work. So, in 2008, even when many thought prices may had already "flattened", Loudoun homes saw a sudden and dramatic 10% price drop in a matter of a few months; and the buying frenzy began.
Since then, we've seen continual competition for well priced homes. REALTORS began to be able to predict market values again since there was some stabilization... at least within that segment of the market. Perhaps because we could set expectations properly, the same people who did not want to sell their homes in 2006 and 2007 (because they didn't want to give up value) were now ready to sell.
Wait! What was that? You got it. A homeowner unwilling to sell in 2007 at $300,000 because they were going to wait until they could sell it for $400,000 again were suddenly willing to sell at $225,000 in 2009? Yes. The sellers trying to time the market lost, big time. In fact, some where now under water, but were willing to face the fact that they could no longer hold on, and started talking about options to foreclosure (i.e. short sales).
With 2009, we've seen more traditional (non-distress, non-bank owned, non-short sale) sales re-emerging in the marketplace, which is what buyers really want.. but inventory remains low. So, premiums are being placed on these homes, and fierce competition ensues. Prices are going back up, for all types of sales, but most especially for well cared for homes which are not short sales. In 2009, we've regained most of the value we lost in 2008.
But now the greed is re-emerging and it is scaring me. Sellers, seeing that prices have started to regain value in 2009 are saying that they have new faith that prices will continue to go up, and they seem to think by next year, or the year after, they will be back up to 2005 prices. No, it's not likely. I don't think so, and neither does Roger Arnold, or any other REALTOR or economist that I know.
My message here: Please, don't try to time the market. If life is suggesting to you it is time to move up, move out, or move on... do it. Sell for what it's worth and make the best of it. I am talking here, mostly, about principal residences... and telling you that if you didn't mean to be a landlord, you shouldn't be. And, you need to seriously calculate the cost of a vacant home before you allow it to stay that way.
Besides, if you are moving out of that "starter" home as a move up buyer, or to relocate, then you are likely going to get the best end of both markets - seller's market conditions when selling, buyer's market conditions when buying. What more could you ask for? You would not have gotten that benefit in 2005.
Looking at value rather than prices, it may very well be prudent for you to consider making your move now, while interest rates are lower and buyers have buying power, while inventory is low and buyers have little choice and are paying premiums and competiting not just on price but on terms.
Remember, most homeowners who thought, in 2007, thought their 2005 values would have returned by now. It hasn't, and it's cost them money - a lot of money - over the past two years. They have seen their dreams shattered and finances ruined by trying to time the market. Don't make the same mistake.
Here's an example of someone who's in denial over market conditions - it's a bit humorous, but after reading this blog and watching the video, look in the mirror. You're not doing the same thing, are you?
http://therealestatewhisperer.blogspot.com/2009/08/in-economies-like-ours-its-hard-to-know.html
============
My advice here is NOT one size fits all.
For a personal consultation in the Northern Virginia/Dulles area, please contact me at:
703-669-3142
And, stay tuned to http://www.therealestatewhisperer.blogspot.com/
for more news from the front lines of real estate!
Sunday, August 30, 2009
The Long and Short of a Short Sale, Part 3
Continuing our posts on short sales, this post focuses on how different situations can impact your chances of success with a short sale. Below, I've outlined highlights of the ingredients which improve your chances of having a successful short sale.
A true hardship
If you had a true hardship which is impacting your ability to pay for your mortgage, and you provide evidence to back that up, banks have a strong reason to consider your request for a short sale.
Banking is big business and they are under a lot of scrutiny right now; policy (i.e. politics), and the perception thereof = credibility to their share holders and financial backers; and consequently impacts their bottom line. In other words, banks look better when they are helping people with a true sob story, a true hardship that any of us can imagine happening in our lives or the lives of others we know. So, yes, in some ways, banks are being judgemental about your situation. Don't let your pride get in the way when writing your hardship letter. Tell them why you need their help. They are more likely to give it to you.
You have no other reasonable alternatives
In your hardship letter, you should spell out what alternatives you have considered (and ruled out) and what still exist, and, do it with strength. It increases incentives to the bank for considering your request. For example, if they can show (and you remind them) that you attempted to get a loan modification but didn't qualify, then they know you've TRIED to find alternatives. If you've depleated savings and credit lines (and you demonstrate that), they realize you've TRIED to handle the problem on your own, but were unsuccessful. If you're considering bankruptsy, they realize you consider yourself destitute with few options.
Your letter should always state that you are looking for the best alternative for all involved, and you believe that is the short sale. A foreclosure is not good for you or the lender.
For some banks, if you continue to pay your mortgage payment, they will believe that some how, some way, you will continue to stay current; and therefore, they may not consider your request, or it may be prioritized very low in the stack of requests. Banks, too, go through a state of denial.
In all cases, expect your financial records to be required (in detail). They will do their own calculations to determine if you CAN continue to pay. It's your job to show them you can not. You are not asking for a small favor here; so don't expect it to be easy.
Lower numbers of approval layers = Higher chances of success
For every bank/lender involved, another approval is required. The more approvals required, the more the complicated and time consuming the process gets; and consequently, each approval required reduces the chance of success. If any ONE party denies the request, the short sale will not go through.
If you have only one lender and one loan, the process is fairly easy. If you have multiple loans with one bank, it's also a reasonable transaction to try to accomplish.
If there are two different lenders on two different loans, you must get approvals from both; and it gets tricky. For example, let's say you own a house worth $250,000 today, but you bought it in 2005 for $375,000 with what we called an 80/20 split - meaning you had one loan for 80% of the value ($300,000), and another loan for 20% of the value ($75,000). Again, if both loans are through the same bank, it's not too hard; but if there are two banks, they will argue over how the proceeds get split.
In a foreclosure, the primary lien holder (the one with the $300K loan) would get the full proceeds of the sale - approximately $225K after closing costs; which translates to something like $215K after having to incur the costs for foreclosing, too. (There are HUGE variables depending on banks and states here, so please understand this is only an approximate example.) The secondary lien holder will get nothing.
In a short sale, the only reason a second lender would even consider approving a short sale is for a reward of some sort. Fairly commonly, we see that the second lender will accept $5K as full payoff for the $75K loan. Remember that it costs them money to process the sale, and so they are really not getting much at all for this. That means they take their time approving (or not) the sale.
The other thing is that the primary lender - the one that would get $215K of the $300K you owe them (of the $600K they thought they were going to get if you paid it over 30 years) - is being forced to face a painful situation, and they do NOT want to share another $5K with the second bank. But, they might....after all, do they have a better alternative?
As you can easily see, however, the higher the number is that the second bank requires, the less likely the first bank is to agree to split to split the proceeds. At some point, it makes more financial sense for the primary lender to allow the property to go through foreclosure.
If you add 3 or more loans with different lenders to the equation, everything can very easily can fall apart.
Most consumers have no idea that very often, they are paying (for example) Countrywide (now Bank of America) every month but another lender or institution is actually the mortgage holder, and BofA only services the loan (handles collections, escrows, paperwork and customer service). When there is a servicer and investor, you must work through the servicer but the investor must approve the short sale. While this generally does not deter chances of approval (it depends on who the investor is), it will often increase the length of time required to process a short sale. The longer it takes, the more challenging it can be to keep buyers on the other end. At some point, their patience may wear out. No buyer, no sale.
If you have some kind of mortgage insurance on your loan, the insurance policy can impact your ability to get a short sale approved. If the bank is not taking "enough" of a hit on the short sale, it may not qualify to collect on the insurance; and it may be better for them to foreclose on the property so they get foreclosure proceeds plus the insurance payout. We're seeing this affect less short sales, but it can be a "behind the scenes" factor. Part of the reason it is not impacting us too much today is that we were rarely doing FHA or VA loans or even those with private mortgage insurance in 2004-2006; at least in the Washington DC market. And, those homeowners are the ones that are being most impacted by the recent decline in home values. When combined with a personal hardship, these homeowners make up the majority of the short sale candidates in our market.
Timing
Some parts of "timing" you don't choose. You don't know the lenders internal climate, and what their current business policy is for dealing with short sales - and this changes often based on market and political influences; and it can impact your sale.
What you CAN choose is when to ask for professional help. Get your real estate agent involved before you have missed a payment. This gives your agent the most amount of time to help you examine your options and then to start the process moving along if short sale is the best strategy.
Make sure that once the ball starts rolling, everything happens as quickly as possibly. Have your financial package ready, so that once you have a ratified contract, you can submit the package to the bank immediately without delay.
Also, in cases where there are multiple lenders, make sure you submit packages to all of them at the same time, or the earliest time at which you can deliver a complete package. Do not get approval from one lender first, and then submit for approval from the second lender. Your multiple banks can work concurrently on processing their packages.
Your agent(s): The "Professional Negotiator"
Some people immediately reach out to a "professional" negotiator. Many of these negotiators are asking for very high (non-refundable) fees upfront, and additional success fees. I am not a fan of these companies, although some are reasonable and work WITH your real estate agent to assist you.
I see these companies as extensions of the real estate agent. Instead of hiring additional administrative assistants to handle all the paperwork, emails and phone calls, the agent is choosing to hire an outside company with specialized experience in the area of short sales. However, some agents are hiring these companies because they are intimidated by the process of negotiating with your bank. Any real estate agent afraid of negotiating is not an agent I would want to hire.
So, if a third party company is involved, do your research and make sure you understand their role and your agent's role. Usually, these companies require some fee upfront - if you have a complicated case, then a fee may be reasonable (not thousands of dollars). Any success fees, since they are working as an extension of the listing agent, should be incurred by that agent, and guarranteed by the owner (my opinion).
NOTE: Some states are not allowing agents to negotiate short sales on behalf of their clients; they are requiring attorneys and/or third party negotiators. In these cases, it makes sense that the agents would pass along those fees to the clients.
Your agent(s): The Real Estate Agent
To me, the most critical decision an owner makes during this process is what real estate agent to hire. Your agent will be guiding you through the process from start to finish. You want to make sure your agent knows how. Do they understand the process? Do they have good communication skills (written and spoken mastery of the English language)? Good follow up skills? Do you know what the process is and who will be doing what for you?
Remember, your agent must negotiate with the bank, facilitate a lot of financial paperwork exchange, market and advertise your property for sale, negotiate on your behalf with the showing agents and their clients; and coordinate the transaction all the way through to the closing. It's a TOUGH job; hire carefully.
The right marketing and good price negotiation
You will need to demonstrate the marketing plan used to procure an offer. Walking across the street to the neighbor's house and asking what they are willing to pay for the house is not going to suffice. You must show that you listed the home, usually with a real estate agent who placed it in the multiple listing service (not all areas have these, believe it or not). You must show that you did all the typical stuff - internet advertising, signage, etc. and that you attempted to make the availability of the home known to the widest possible audience in an attempt to procure the best offer possible.
You must also demonstrate why you used the asking price you did - with comps and market data... not because just about anyone will buy just about anything if it is cheap enough. You can not ask $100K for your $250K house and then expect the bank to accept an offer at that price.
In a continuing declining market (by the way, this is no longer the case in our area), you might have run comps that supported a $240K-260K price point, so you listed it at $235K to try to get a quick offer. After 2 weeks, you dropped the price to $225K, still nothing. Now, you're 30 days into this and there have been no new sales in your market place in that 30 days and no body seems that interested. You get an offer of $175K.
Well, here's what I'd do - I'd drop the asking price to $175K and wait a few days - maybe a week, to see if I can get that offer from anyone else. Hopefully, you'll get an offer at $200K, maybe $215K, and then you can ratify and send it to the bank. If not, I'd ratify the $175K offer and submit it. You can then show that you TRIED to get a better offer or multiple offers at that point, and you couldn't. It demonstrates that the price is not below, or at least not far below true market value.
Well, here's what I'd do - I'd drop the asking price to $175K and wait a few days - maybe a week, to see if I can get that offer from anyone else. Hopefully, you'll get an offer at $200K, maybe $215K, and then you can ratify and send it to the bank. If not, I'd ratify the $175K offer and submit it. You can then show that you TRIED to get a better offer or multiple offers at that point, and you couldn't. It demonstrates that the price is not below, or at least not far below true market value.
The right buyer
Selecting a buyer who understands the short sale process is important. If the buyer MUST move within 60 days, and you haven't started the process with your bank, that is not going to work.
Selecting a well qualified buyer is critical. Make sure that the buyer has the funds available to close, and that they are in an FDIC insured account (not the stock market). Make sure the pre-approval letter is from a well respected loan officer and from lender (not a mortgage broker) and is current. If the process takes several months, your agent should be checking in with the lender to make sure the loan program remains available and that the buyer (to the best of his/her knowledge) is still qualified.
The right offer
If you're in a fairly active market, your agent should market your price agressively, but not ridiculously, in order to obtain a quick offer - hopefully many. The lesser contingencies the better. The buyer will want some protection in the contract - it is only reasonable. But, as the seller, negotiate as much as you can in your favor. Make sure the buyer understands - even if they do a home inspection - the property is being sold as is, and the homeowner will make no repairs (after all, this is a financial crisis, and the buyer is getting a great deal).
If you are "approvable" based on the bank criteria, the price is the make or break it point of the short sale contract. While everyone knows that short sales, from a buyers perspective, SHOULD be good deals, it can not be much below what the bank's appraisers show is fair market value for the home. If you sent in an offer of $100K on your $250K home, the banks generally won't accept it. Remember, most are taking public bail out funds, and almost all have public share holders or atleast multiple financial backers. Even if they WANT to, they can not take ridiculous offers... their financial backers would walk, the public would scream. It simply isn't possible. (Keep in mind here that I am not referencing a list price, but market value.)
When it falls apart
With so many variables, often sales fall apart on the buyer's side. Maybe the buyer can't wait any longer, or their financial situation changed, or you simply picked the wrong offer because the buyers agent can't manage her clients' expectations, or maybe the bank counters with a higher price and the buyer chooses not to accept it. Whatever the reasons, buyers often walk. But, the first contract is critical because it starts the ball rolling with the lender. If your contract falls apart, I discourage you from telling the bank this information, because they will stop their process. Just get a new contract; and try to collect the earnest money for your clients.
Maybe you had back up contracts, or maybe just other offers - call them back. Maybe they are still interested?
If you've gotten bank approval when the contract falls apart, getting the second offer should be easier - once you put the house back on the market, and you can show potential buyers the terms that the bank agreed to, it means most of the waiting is over. If you replace the contract quickly enough, perhaps you won't even need to get reapproval (depends on how the approval was issued by the lender). Even if you are required to get re-approval, try hard to match the terms and conditions and make the contract as strong as possible. From a buyer standpoint, putting an offer on an "approved" short sale takes much of the guessing and waiting out of the process, and makes your home a very attractive alternative.
BOTTOM LINE: By working with a qualified professional who understands the various nuances involved in these types of sales, your chances of success are dramatically increased. I've done my best to outline for you the major considerations. I hope you will use these to interview agents. Make sure they can expand on these items, and explain which are mostly likely to impact you.
STAY TUNED FOR MY NEXT POST WHICH WILL OUTLINE THE VARIOUS TERMS OF CONTRACTS AND CONSIDERATIONS ON BOTH SIDES OF THE TRANSACTION.
STAY TUNED FOR MY NEXT POST WHICH WILL OUTLINE THE VARIOUS TERMS OF CONTRACTS AND CONSIDERATIONS ON BOTH SIDES OF THE TRANSACTION.
***
Of course, if you own a home in Northern Virginia, I hope you'll call ME first to see if I can assist you. Also, no matter where you are in the country, feel free to contact me. While I can not give real estate advise outside of Virginia, I can connect you with a proven professional in your area. I belong to many networks, including REO and short sale expert networks, and we have members throughout the country.
I can be reached at:
703-669-3142
Tuesday, July 21, 2009
No Matter How Unique
No matter how unique your situation or your needs, please remember I am here to assist you and your friends, relatives and colleagues with all your real estate needs! To remind you of this, I wish to share with you this video, found on You Tube:
http://www.youtube.com/watch?v=erPLr16Zzjc
While these homes are found who-knows-where, with your help, I'd like to put together a photo collection of the strangest homes/buildings in Northern Virginia.
Send me a photo of the funniest most unique home you can find, by August 31st, for each picture of a home that is used in our video, you'll be paid $100; for commercial buildings, you'll earn $50.
And, remember, your business is important to me, and your referrals are the lifeblood of my business. Call me today with any real estate questions!
Vicky Chrisner
Keller Williams
703-669-3142
Friday, May 29, 2009
REO's - The Addendum
Three or four times a week I get an email inquiry from consumers who have read my prior posts on buying REO's. (See the most popular of these posts at:
http://therealestatewhisperer.blogspot.com/2008/08/reos-everything-you-need-to-know.html or http://therealestatewhisperer.blogspot.com/2008/12/types-of-sales-seen-in-todays-market.html). Specifically the email requests are for an addendum that I reference.
I am always hesitant to give it directly to the consumer. Laws vary greatly from location to location, and I don't want to be accused of giving real estate advice in areas where I am not licensed. Each bank addendum is different, and therefore the addendum should reflect the language specific to the rest of the contract. The addendum is intended to serve as an example, and not a form that should be used carte blanche in all REO transactions.
Then, I feel bad when I tell a consumer to have their agent contact me directly to obtain the addendum. I feel worse when I am overwhelmed carrying for my own business and drop the ball and fail to send it for them; and I confess that I've done that a couple of times inadvertently. I fear it will be more common, as I've switched primary computers and it is a difficulty for me to go to the other computer to forward the addendum. You see, I am using the addendum less because in our local market, traditional sales are returning (Hip, Hip, Hooray), short sales are becoming more successful and I am simply working less in REOs.
I currently have one REO listing - hits the market today; but all of my deals that are under contract for the moment include contracts for purchase in traditional sales or new home sales. A new day is dawning in Northern Virginia.
In any case, I think I've come up with a solution; as I know some areas are just now being hit by floods of REOs and you really, really need this! I found a place where I can store this addendum online and make it available to you. Here it is:
http://docs.google.com/Doc?docid=0AWPfdTb2RWFGZGYyY3JzNWpfM2R2ZzNta3Zr&hl=en
Remember, reading blogs and educating yourself is great, but does not replace competent real estate or legal representation - ever. There are just too many variables; and a blog can not possibly address them all. However, the information you get from my blogs, and others, should serve to stimulate educated discussions between you and the professionals you are choosing. You SHOULD NOT know more than your agent. If you do, you should get another one. I firmly believe the value of an agent is advice. Sure, there are service related conveniences - access to listings, lockboxes, forms, affiliated companies that may offer free or low cost services, etc. But, what a Real Estate Agent should bring to the table, above all else, is their knowledge.
http://docs.google.com/Doc?docid=0AWPfdTb2RWFGZGYyY3JzNWpfM2R2ZzNta3Zr&hl=en
Now, go forth and purchase!!! And, if you are in my area - look me up! I'd love to serve as your chosen real estate consultant. http://www.vickychrisner.com/ 703-669-3142 VChrisner@KW.com
Wednesday, November 26, 2008
The "STATE" of the Market
The Virginia Association of REALTORS released it's third quarter sales report. Most consumers will be shocked to hear that, overall, sales prices are UP 1% compared to last year, and sales activity (closed sales) is down only 9.2% for the state.
But, as the National Association of REALTORS is constantly trying to explain, real estate is regional. And, in reviewing this report, it is clear. Some areas have found the "bottom" of the market and have stabilized, and even started recovering. I expect other areas are still in need of deflation in pricing before they will stabilize. Clearly, price is king in today's economy.
Look at these tidbits:
For the third quarter of 2008, when compared to the same quarter in 2007....
- Prince William County's median price is down 42%, but sales activity is up 145%.
- Lexington/Buena Vista's median price is down 38%, sales activity is up 70%.
- Greater Piemont's median price is down 28%, sales activity is up by 19%.
- The Dulles Area's median price is down 23%, and sales activity is up by 27%.
- Northern Virginia's median price is down 19% and sales activity is up by 15%.
On the other end of the spectrum:
- Chesapeake Bay & Rivers median price is UP 19%, but sales activity is down 52%.
- Roanoke Valley's median price is down only 4%, but sales activity is still down 26%.
Prince William County leads the state with most improvement in sales activity, reflected as closed sales for the quarter (3128 transactions), and pending sales (3894). Northern Virginia (defined as Fairfax & Arlington Counties), and the Dulles Area (Loudoun County) closely follow. These stats show us that once the submarket finds its correct pricing, buyers are out in force again.
The lesson to sellers here is - if you are in an area with declining sales activity, then your prices will be declining, soon. Price AHEAD of the curve, below the last sale... you must attract a buyer, and quick, before you lose even more value. Sellers in these markets thinking that instead they will "wait out the market" need to be prepared for a long wait -several years.
The lessons to buyers is - if sales activity is up, the prices will soon follow. Buy now. Get off the fence. Buy quick. It seems you may have missed the bottom of the market, and if you wait to try to buy at the "bottom" of the market again, you may be waiting many years... and you could miss it again. With interest rates favorable, the combination of affordable home prices and availablity of good loans means that this is an incredible time to be a buyer.
-----------------------------------------------------------
To read the entire report - click HERE.
For information about sales activity in your neighborhood, sign up for a free (automated) market snapshot here. If you put in your email address and physical address, this report with detailed sales activity will be emailed to you monthly (you can unsubscribe at any time). I am also available to complete a complimentary Comparative Market Analysis for you if you are considering selling in the next 3 to 6 months.
To search for available homes and land in the Northern Virginia area, click HERE, this search links directly to a live feed from the local MLS.
Thursday, October 16, 2008
Renters Beware!
Imagine this: You're at home, having a weekend cookout with friends. There's a knock at your door. It's a real estate agent. He explains your landlord lost the property when the bank foreclosed. He wants to know how quickly you can move. He offers you a hundred dollars if you can move by next weekend, if you can't, they'll start the eviction process immediately.
What? Eviction? Wait! You've been paying your rent. You have a lease. The owner never said anything. What's going on?
This scenario is happening with increasing frequency. Renters are shocked to learn that even if they pay their rent, landlords have no obligation to use that money to pay the mortgage payment. In most cases, the renters can forget trying to recover their security deposit.
What can you do to protect yourself?
First, consider renting from a professional, established owner/landlord. For example, apartment or other rental communities are usually a safe bet, plus they often offer other services and amenities not found with privately owned homes.
If you can not find a rental community that fits your needs, I suggest you contact a real estate agent who can help you evaluate the risks associated with renting from private landlords.
You run a lower risk of running into this situation if the property was recently purchased by the current owner or if the property has been an investment property for many years. If the owner had listed the property "for sale" or "for rent", beware! These are desperation moves by an owner. Owners in this situation have been unable to sell their home and are usually in financial distress.
After you've moved in, keep your eyes peeled for other signs. If an owner fails to conduct maintenance on the property, if the landlord seems to be dodging your calls, or you see bank notices addressed to him, these could all be a sign of problems to come.
In the "good ole' days" the landlords screened the tenants. Today, smart tenants are screening their landlords, too; and a professional tenant's agent can help you.
=======================================================
Search for homes for rent or sale using the Home Search tool on my home page: http://www.vickychrisner.com/ and let me know how I can help you!
Monday, September 15, 2008
August Stats Show Stabilizing Market in Northern Virginia
In reviewing the latest statistics published by the local MLS system, I continue to feel cautiously optimistic about the stabilization in our market place. Northern Virginia includes Fairfax & Arlington Counties and all of the cities within those areas. Highlights of the report include:
- Inventory this month is down from 11956 active listings to 9191 active listings as of the end of August.
- With 1887 newly recorded contracts last month, that indicates an inventory of approximately 4.87 months supply (NAR considers 6 months inventory a balanced market).
- We continue to see confidence in the market place by investors and first time home buyers, indicated by the number of cash transactions (about 8% of purchases) and those financed with FHA and VA loans (about 27% of purchases).
- Perhaps the best statistic in all of this is that the number of units sold was up about 6% compared to the same time last year.
Northern Virginia is a large area.
Arlington has not followed the trends of the other sub-markets. Arlington has remained relatively stable, with prices and activity level being extremely similar when compared year to year; and inventory levels hovering around the 4 month level.
Conversely, Fairfax has seen dips, and seems to be showing signs of recovery. The prices in Fairfax are down about 20% compared to last year, with the number of solds up more than 10% from August 2007. The inventory level in Fairfax County is now at about 5 months.
Personally, I am concerned about Arlington. When everything around the area is adjusting, it seems odd that one area would be able to weather the storm without showing wear. I believe that gas prices have kept that area stronger, as people wanted to live close to the city to save on gas. In addition, Arlington has been "built out" for much longer with no significant new development to increase inventory. However, as the suburbs seem to have adjusted to the new market, Arlington will not appear a value compared to things just a few miles away. In order to keep demand high, I expect to see price drops in Arlington in the coming months. Only when the entire area has "rebalanced" will be able to move to the next level, "recovery".
=================================================================
MRIS publishes new statistics monthly, around the second week of the month. The public can access these reports from MRIS.com. They are published by region, county, city, and even zip code. A qualified agent can help you understand the information contained in these reports.
For an even closer look at market conditions, order a personalized Market Snapshot by clicking HERE. Type in the information about your home, and your email address... a personalized report will be sent to you in a few minutes, detailing information about the geographically closest homes which are for sale and have recently sold.
Monday, August 11, 2008
No. Va. Shows Continuing Signs of Stabilization
In the last few months, I have mentioned positive trends in the real estate market within Northern Virginia, and I am pleased to say that the statistics continue to back up my statements. The region is showing signs of stabilization.
July's statistics (published by MRIS) show that Northern Virginia (defined as Fairfax & Arlington Counties including the cities of Fairfax, Falls Church and Alexandria) indicate the following:
* While prices are down about 13% compared to last year, sales prices took their biggest hit in January of 2008, and since then seem relatively stable with only minimal changes in average sales prices each month throughout 2008.
* There is currently a 4.86 month supply of inventory (down slightly from last month). The National Association of REALTORS says that a 6 month inventory is generally indicative of a "balanced" market. This is down from 6.19 months of inventory in July of last year.
* The number of units sold is relatively the same as this time last year, with a less than 1% difference.
* We can tell first time home buyers are entering the market, as FHA and VA loans financed about 24% of the closed sales in July.
* Investors have re-entered the market, demonstrated by the increase in cash transactions, loan assumptions and other creative financing options - these transactions made up about 11% of the transactions last month.
Please remember that this shows statistics for the No. Virginia area as a whole. Within this area, there are many submarkets. Your agent can assist you with further determining the situation in the submarkets that will most affect you.
Look for more summary reports on Fairfax & Loudoun Counties in the next few days.
OTHER TOOLS AND REPORTS:
A great tool for sellers to understand the market that is geographically closest to them is the Market Snapshot - order your automated report from the home page of my web site (http://www.vickychrisner.com/) . You will need to put in a real email address and real physical address, as the tool uses your physical address to determine the area for the report, and then emails the report to you.
The MRIS reports are posted by region, county and zip code each month. These reports are available to the public at http://www.mris.com/
Friday, August 1, 2008
Thinking of Selling? Some Facts about Northern Virginia
So, you're thinking of selling... wondering what the market's like?
Here are some interesting statistics, published through the end of last quarter (June 2008)... and a bit of information about how to interpret it:
In Northern Virginia
(No. Virginia is defined by MRIS as Fairfax Co. & City, Alexandria, Falls Church and Arlington)
* Prices of SOLD home are down about 15% from last year.
* The number of homes sold are down about 5% from last year.
* The average number of days a home stays on the market is 83.
* The SOLD prices of homes is, on average, 93% of asking price.
Who the buyers are: Looking at how people are financing homes gives us some clue about who the buyers are:
* 65% finance with conventional loans. This requires a 20% down payment, which usually signifies someone OTHER than a first time home buyer.
* 23% finance with FHA or VA loans - these are typically first time home buyers.
* 10% pay cash, assume a loan or use seller financing - these are typically investors.
Compared to last year, there is a huge difference. Last year more than 90% of the purchases were paid for with conventional loans, only about 1% were FHA or VA loans, and less than 5% were paid for with cash, loan assumptions or seller financing.
What does this mean? Well, it says that the No. Va. region is showing some signs of stabilization. When you see an increase in first time home buyers and investors entering the market, that is a good sign.
Further supporting this, is the supply ratio - last year this time, we had a 5.7 month supply of available homes; this year, it's down to 4.96 months. That might not sound like a big adjustment, but it is measurable. There are signs of stabilization in the market place.
Having said all of this, what's going on in Northern Virginia does not tell you what your area is like. Some areas are showing even stronger levels of stabilization, where other neighborhoods have indicators that seem to suggest further price decline in the coming months.
If you're trying to decide what your next step should be, call me. I will be happy to run reports and help you analyze the data that is most critical to you.
But, for you "do-it-yourself-ers" out there, feel free to use these resources to help you learn more:
* If you follow this link, you are welcome to run the same reports for anywhere that MRIS services. You can run them by area or by zip code. There are a lot of numbers on these reports, but I have shared with you some of the greatest industry markers available to us. New statistics are published around the 10th of each month for the preceding calendar month: http://www.mris.com/reports/stats/monthly_reti.cfm
* On the home page of my web site is a Market Snapshot tool, it links to the MLS with live data and will tell you the prices and other information of homes that have sold or that are on the market that are closest to your home. Please note, the report will be automatically generated and emailed to you - so you must include a REAL email, or you will not receive the report. You must also include the specific address of the property so that tool can function - since it is looking for the closest addresses to yours, if it does not know where you live, it will not be able to determine who is closest to you. Once you've entered the information, you'll get monthly updates automatically. You can also choose to get information more often.
If you have any difficulties or would like assistance obtaining or analyzing this information, my team and I are here to serve you. Don't hesitate to ask!
Subscribe to:
Posts (Atom)
